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MLex Market Insight

Brazil, White-Collar Crime and Petrobras

MLex Market Insight

MLex Market Insight

News

4.99 Ratings

🗓️ 19 September 2017

⏱️ 14 minutes

🧾️ Download transcript

Summary

MLex London Managing Editor Ana Rita Rego is joined by Martin Coyle and Ben Lucas in London, and Rodrigo Russo in São Paulo, to discuss the latest developments in the large-scale investigation into Petrobras, known as Operation Lava Jato. Listen to MLex’s bribery and corruption team discuss the implications for multinational companies that have been named in Brazilian prosecutors' documents.

Transcript

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0:00.0

Hi and welcome to another Emlex podcast.

0:08.2

I'm Anorego, managing editor for Emlex's London Bureau.

0:12.0

Today we'll be looking at Brazil, white-collar crime and petrobras.

0:15.6

Three awards that have appeared side by side in hundreds of Emlex articles in the last few years.

0:20.3

Joining me today, we have Rodrigo Russo in Emlex's office in Sao Paulo.

0:23.6

Ben Lucas and Martin call in London.

0:25.6

Hi.

0:26.6

Hello.

0:27.6

Hi.

0:28.6

So Brazilian prosecutors have kick-started a new phase in this long-running probe into Petrobras.

0:33.6

We could sit here all week discussing the ins and outs of this tale, but I really want to focus on this latest phase and see what it really has brought to light.

0:43.3

We see lots of multinational companies have surfaced. Perhaps Ben, you can take us through what this latest phase means.

0:50.3

Sure, so the allegations are contained in a transfer court documents filed around the middle of August, a court in the city of Curichiba by federal prosecutors from the state of Paranar, which is the prosecutor that is leading the investigation into corruption surrounding Petrobras, which is known as Operation Lavajato.

1:11.3

And now there's been a number of multinational companies that have been named in the

1:15.9

prosecutor's documents, including Greek shipping companies, Zakos and Aegean, US Asphalt

1:21.8

trader, Sergeant Marine, sea drill, which is a Norwegian offshore drilling company, and

1:27.3

Anglo-Swiss miner, Glencore, through its wholly owned subsidiary, which is a Norwegian offshore drilling company, and Anglo-Swiss miner, Glencourt,

1:29.3

through its wholly owned subsidiary, which is called Ocean Connect Marine.

1:33.3

Now, without going into the details of each specific case, the prosecutors file say that basically

1:39.3

these companies paid middlemen, who in turn paid bribes to Petrobras officials for inside information to help them secure contracts for these companies.

1:50.0

And in several of the cases, the middlemen got kickbacks from the agreements, and money also went on to Brazilian lawmakers who controlled some of the appointments at Petrobras.

2:00.0

Now, the prosecutor's allegations are based on documents and testimonies from former Petrobras officials,

...

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